02130cam a22002777 4500001000600000003000500006005001700011008004100028100001800069245015000087260006600237490004100303500001600344520092900360530006101289538007201350538003601422690010901458690005701567700001901624700001801643710004201661830007601703856003701779856003601816w5513NBER20150802164749.0150802s1996 mau||||fs|||| 000 0 eng d1 aRazin, Assaf.10aTax Principles and Capital Inflowsh[electronic resource]:bIs It Efficient to Tax Nonresident Income? /cAssaf Razin, Efraim Sadka, Chi-Wa Yuen. aCambridge, Mass.bNational Bureau of Economic Researchc1996.1 aNBER working paper seriesvno. w5513 aMarch 1996.3 aEven though financial markets today show a high degree of integration, the world capital market is still far from the textbook story of high capital mobility. The failure to have a tax scheme in which the rate of returns across countries are equated can result in inefficient capital flows across countries. This comes from the interactions of market failure and the tax system. The purpose of this paper is to highlight some key sources of market failure in the context of international capital flows and to provide guidelines for efficient tax structure in the presence of capital market imperfections. We distinguish among three main types of international capital flows: foreign portfolio debt investment (FPDI), foreign portfolio equity investment (FPEI), and foreign direct investment (FDI). The paper emphasizes the efficiency of a non-uniform tax treatment of the various vehicles of international capital flows. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aF21 - International Investment • Long-Term Capital Movements2Journal of Economic Literature class. 7aH20 - General2Journal of Economic Literature class.1 aSadka, Efraim.1 aYuen, Chi-Wa.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w5513.4 uhttp://www.nber.org/papers/w551341uhttp://dx.doi.org/10.3386/w5513